...loss from credit crisis in the US. In order to keep the company continuous their operations, the company need to experience internal recon structuring, The company proposed share capital reduction pursuant to the Companies Act, 1965 involving the reduction of the par value of each existing ordinary share of PMI in issue from RM0.50 to RM0.05 via the cancellation of RM0.45 of the par value of each existing ordinary share of RM0.50 each ("Proposed Par Value Reduction"). The company also proposed reduction of the share premium account of PMI of up to RM224.007 million ("Proposed Share Premium Reduction"). The company proposed consolidation of two (2) ordinary shares of RM0.05 each in PMI (after the Proposed Par Value Reduction) into one (1) ordinary share of RM0.10 in PMI each resulting in the revision of PMI’s issued and paid-up share capital from 2,479,324,224 ordinary shares of RM0.05 each in PMI amounting to RM123,966,211 (after the Proposed Par Value Reduction) to 1,239,662,112 ordinary shares of RM0.10 each in PMI amounting to RM123,966,211 (“Proposed Share Consolidation”).(The Proposed Par Value Reduction, Proposed Share Premium Reduction and Proposed Share Consolidation shall collectively be known as the "Proposed Capital Reconstruction"). Further, should the issued and paid-up share capital of the Company be increased prior to the implementation of the Proposed Par...
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...| Debt Management Program in the Philippines | The first debt and debt service reduction operation the World Bank financed was the Debt Management Program Loan to the Philippines, approved in 1990. Its main objective was to help restore the Philippines' creditworthiness by reducing the destabilizing pressures exerted by an excessive debt-service burden. The government, having inherited a huge debt service obligation, formulated a debt restructuring program for the country and a request for debt-relief from creditors, with assistance from the Bank and the IMF. Several events helped improve the Philippines' creditworthiness. Three of them are particularly relevant to the operation. First, the government adopted a program of deep structural and macroeconomic reform. Second, it reduced the debt stock by about $650 million equivalent, or about 2.3 percent of its outstanding debt at the time, using Bank and IMF financing to buy back $1.46 billion of debt from commercial banks at 50 percent discount. And finally, by signaling confidence in the Philippines' commitment to sound macroeconomic reform, the Debt Management Loan opened up international financial markets for the country. However, the program's success also led to a new problem. It encouraged new loans and other inflows of capital, which eventually became a major source of monetary problems and instability. The resulting increase in inflation forced the government to rein in the economy, suppressing growth; the currency...
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...Capital Reconstruction 1.1 Definition Generally, reconstruction can be defined as the process of re-build after the thing being damaged or destroyed. In accounting, reconstruction of capital, which also known as capital reconstruction can be defined as the plans made by a company for the restructuring of its capital base. Capital reconstruction involves major alterations in the capital base of a company. It is related to the term capital restructuring. In other word, when a company suffered losses for a several years and showed losses in the statements of financial position, company may go for reconstructing.When a company's balance sheet shows huge accumulated losses, heavy fictitious and intangible assets or is in financial difficulties or is to over capitalized, and then the process of reconstruction is restored. Capital reconstruction also defined as a company gains the agreement of its shareholders and creditors to vary the rights of its members and creditors, by altering the capital structure in a way that allows the existing company to continue in business. In other word, the reconstruction need to be done after approval from the shareholders and creditors in order to continue the existing of the company. 1.2 The objective of reconstruction There are five objective reconstruction which are (Goyal,): To improve the financial position of the company if the company suffering from heavy losses or is in financial mess or is not in a position...
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...that best completes the statement or answers the question. 1) In the aggregate supply relation, the current price level depends upon A) expected price level. B) monetary policy. C) fiscal policy. D) consumer confidence. E) all of the above 2) Based on the aggregate supply relation, an increase in current output will cause A) a shift of the aggregate supply curve. B) an increase in the current price level. C) a change in the expected price level this year. D) an increase in the expected price level and an upward shift of the AS curve. E) an increase in the markup over labor costs. 3) The aggregate demand curve will shift to the right when which of the following occurs? A) a reduction in the money supply B) a reduction in consumer confidence C) a rise in the price level D) a reduction in taxes E) a decrease in the price level 4) Assume the economy is initially operating at the natural level of output. Now suppose a budget is passed that calls for an increase in government spending. This increase in government spending will, in the short run, cause an increase in A) the interest rate. B) the price level. C) the nominal wage. D) all of the above E) none of the above 5) Assume the economy is initially operating at the natural level of output. Suppose that individuals decide to decrease their saving. We know that this decreased desire to save will be "neutral" in A) the short run, but not the medium run. B) the medium run, but not the long run. C) neither...
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...share. 2012: There was a mutual agreement conducted on June 28, 2012 where Private Ltd. redeemed 500 Class Y shares for $25 per share. Lea is the sole shareholder of the Class Z shares and also became the sole shareholder of the Class Y shares, which are not voting shares. Tax consequences: Under subsection 51(1), there is no disposition of shares. The ACB of the Class Y shares will be the same as the ACB of the Class Z shares, which is $10 per share. The 1,000 Class Z shares that have an ACB of $10,000 are converted to 1,000 Class Y shares that will have an ACB of $10,000. As a result of the conversion, the capital increased which resulted in a reduction in the PUC as per paragraph 51(3)(a). See details below. PUC reduction (A – B) x C/A = (8,000 – 5,000) * 8,000/ 8,000 $3,000 PUC of the 1000 Class Y Shares Legal PUC ($8 x 1,000) 8,000 Reduction in PUC (3,000) PUC for tax purposes 5,000 PUC per share: $5,000 / 1,000 shares = $5 As a result of the redemption / purchase by mutual consent of the 500 Class Y Shares, this results in a deemed dividend of...
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...Intelligent Cost Reduction Developing & executing a program to reduce cost & create a sustainable operating platform July 2008 Contents Section 1 2 3 4 5 6 Point of view Anatomy of a successful total cost management program Beginning with the business & front office Opportunities in the support units Some lessons learned PwC qualifications to help Page 3 7 11 16 19 21 Point of view Point of view • Cost management is a key issue today and for the foreseeable future – The market is experiencing a severe liquidity crunch and the explosion of a global asset bubble well beyond sub-prime. At the root of this crisis is not only asset values, but the amount of capital in the financial system today versus the size and liquidity of the balance sheets (and off-balance sheet commitments) of financial institutions. This situation is not likely to reverse itself for a number of years. In the environment of de-leveraging and scarcity of capital, we believe fundamental re-thinking regarding business strategies, operating models and cost structures will be necessary. • A pre-securitization baseline may be the appropriate mindset – If one assumes that the securitization markets have significantly contracted in a permanent fashion, then the appropriate way to think about the business may be in a pre-securitization baseline, adjusted for key acquisitions/divestitures, etc. This means that the proper mindset to consider in the business strategy and budgeting area may...
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...Protocol is one of the global attempts that spell out the increasing concern of climate change. The urgency to act on climate change issues can not be ignored or denied. Past few decades have evidenced and strengthen its immense impact on every arena of sustainable issues of humanity (Climate trends 2007): ecological, economic, social /culture (‘sustainability’ is meeting the triple bottom line). Action should be taken by the governments to address this issue both on local and global levels. This paper identifies governments should focus on policy reforms in order to address climate change efficiently and effectively. These policy reforms should gear towards investing on human capital / knowledge capital, utilization of market mechanisms and institutional arrangements and utilization of social capital innovatively. However the negative impact imposed on economic growth by climate change control mechanisms is undeniable (Environmental center 2007), but it is short-term, in long-term it is a smart investment for the future generation: ensured...
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...LDRRMF Accountability Form No. 1 “A” REPORT OF LOCAL DISASTER RISK REDUCTION AND MANAGEMENT FUND UTILIZATION For the Quarter Ending September 30, 2012 GENERAL FUND Province/City/Municipality: CITY OF MATI P 543,188,677.00 p 22,257,663.93 Estimated Revenue from Regular Sources: CALAMITY FUND Less: DISBURSEMENTS Pre-Disaster Preparedness Programs Management/Operational Expenses: Fuel, Oil & Lubricants Travelling Expenses Office Supplies Capital Outlay: Purchase of Office Equipment for OpCen Purchase of Vehicle for (OpCen) Projects and Programs: Construction of Flood Control – Sitio Calasagan, Barangay Sanghay __________________________________________________________________ Post-DisasterPrograms Aid given to Fire Victims in Mati during 3rd quarter of 201 Aid sent to DSWD for the Flood Victims in Manila _____________________________________________ _____________________________________________ Payment of Premiums on Calamity Insurance __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ SUBTOTAL BALANCE 102,920.00 13,980.00 7,780.00 68,000.00 1,482,000.00 99,530.00 ______________________ 1,095,000.00 500,000.00 _______________ _______________ ______________________ ______________________ ______________________ ______________________ P 3,369...
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...To the extent that FDI involves transfer of scarce resources, output and employment in the host developing countries will be "stimulated directly from the production by foreign corporations and indirectly with the multiplier effects from the spending of the income generated in the economy" (Hess and Ross, 1997). FDI also boosts investment in other industries "by putting unused resources to work, by encouraging local suppliers to act as suppliers and distributors for foreign corporations, and by helping disseminate efficient foreign product techniques and management styles to local businesses" (Rothgeb,1989). In recent years many developing countries have increasingly turned to FDI as a source of the capital, technology, managerial skills and market access needed for sustained economic growth and development. It is against this backdrop that most nations seek to attract foreign direct investment. However, several doubts have been raised as to the perceived...
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...MPF53 FINANCE “Review the proposed Carbon Pollution Reduction Scheme (CPRS) in Australia and critique its impact on financial management decisions” BY Xiao Nie Yang Song Date: 20th April 2010 Introduction In today’s society, all countries in the world will experience climate change in coming decades because of increasing carbon pollution (climate change 2007). In order to reduce the carbon pollution, ETS and CPRS will be proposed in the world wide and Australia. This essay is to focus on revising the proposed carbon pollution reduction scheme and point out its impact on financial management decision. In the first place, there is a brief summary about the CPRS scheme in detail. In the second place, there is an analysis about major and minor financial management decisions. In the final place, the impacts of CPRS on its financial management decision will be raised. All in all, the conclusion is a summary of the aim of the essay and how to achieve this aim. The CPRS scheme The emissions trading scheme (ETS) in Australia is called Carbon Pollution Reduction Scheme (CPRS). Australia is very vulnerable to the effects of climate change. They recognize that human activity is causing the climate change and also Australia is one of the biggest polluters on a per capita basis. The CPRS will help reduce Australia’s carbon pollution by putting a price on carbon for the first time in Australia’s history. The carbon price means that goods that...
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...Why EVA is better than ROI (ROCE, ROIC, RONA, ROA) and earnings, operating profit etc. Equity investors should earn on their capital a return far over risk-free interest rate in order to induce and maintain capital in the company Therefore earnings should always be judged against the capital used to produce these earnings Earnings can be easily increased simultaneously worsening the position of shareholders e.g. if more capital is poured into a company although the return on capital is 5% or less (even lower than long-term government bond) Thus it is clear for most people that any earnings figure can not alone be a reliable performance measure (still some companies use EPS !?) ! Following slides focus on explaining why also return on capital alone is often an unreliable performance measure 1 © Esa Mäkeläinen 12.3.1998 E-mail: Esa.Makelainen@iki.fi EVA is a registered trademark of Stern Stewart & Co. EVA vs. rate of return There are two very good reasons why EVA is much better than ROI (RONA, ROCE, ROIC) as a controlling tool and as a performance measure 1. Steering failure in ROI Increase in ROI is not necessarily good for shareholders i.e. maximizing ROI can not be set as a target. (Increase in ROI would be unambiguously good only in the companies where capital can be neither increased nor decreased -> however we leave in a world where both operations are easily executed in almost all companies) 2. EVA is more practical and understandable than ROI As an absolute...
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...RE-INVENTING XYZ Financial Analysis Report Finance Team Prepared for: XYZ BPE Project XYZ Ministry of Government Services November, 1994 XYZ BPE Project Financial Analysis Report Table of Contents Executive Summary ...................................................................................................................................................................................1 Financial Model Review ............................................................................................................................................................................3 Financial Baseline Review .........................................................................................................................................................................4 Base Case Financial Analysis ....................................................................................................................................................................4 Significant Costs and Benefits .................................................................................................................................................................5 Forecasted XYZ Operating Expenditures ..............................................................................................................................................14 Forecasted Operating Expenditures Comparison..........................................................................
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...Reed’s Clothier Case Study FIN370 Finance for Business STUDENT University of Phoenix INSTRUCTOR DATE Reed’s Clothier Case Reed’s Clothier Inc. has struggled financially for the past three years. Owner, Jim has requested to his banker Harold Holmes to extend the company’s credit line in order to pay a $130,000 note payable that is going to be due soon. Unfortunately, the banker refused to give any additional credit and recommended to reduce the store’s inventory through an inventory reduction sale. The banker also recommended bringing Clothier’s accounts receivable to the industry averages. Jim argued that that he was going through a temporary cash flow problem and an inventory reduction sale would have a negatively impact on the sales. The eight answers below will help to determine Reed’s Clothier financial health and if its owner, Jim, should follow the recommendation that were provided by his banker. Question #1 Calculate a few ratios and compare Reed’s results with industry average. What do these ratios indicate? Liquidity Ratios: Current Ratio = Current Assets = 1960 = 2.0 Current Liabilities 1030 Quick Ratio = Current Assets - Inventory = 921 - 491 = 0.9 Current Liabilities 457 Receivables Turnover = Sales = 2,035 = 4.9 Accounts Receivable 413 Average Collection Period = ___365 _____...
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...additional capital equipment is MC 40P where P represents a reduction of one unit of pollution in the mines. It also feels that for every unit of pollution reduction the marginal increase in revenue (MR) is MR 1,000 10P How much pollution reduction should Appalachian Coal Mining undertake? Appalachian Coal Mining decided to install additional capital equipment, they would decrease the amount of pollution that their company produces. This installation of additional capital equipment will also lead to an increase in labor productivity. However, when assessing the benefit that this equipment will produce, one must also take into consideration the additional costs of such activity. When assessing this situation, one must make sure hat the costs are not greater than or equal to the benefits, thus offsetting any benefit from installing the equipment and the pollution reduction. In order to determine whether or not the cost of installing the capital equipment outweighs the benefits of the equipment, one must fix the level of pollution reduction and determine the optimal level of pollution reduction. According to our text, “the optimal level of the activity—the level that maximizes net benefit—is attained when no further increases in net benefit are possible for any changes in the activity, which occurs at the activity level for which marginal benefit equals marginal cost: MB = MC” (Thomas & Maurice, 2011, p. 97). In other words, the optimal value for pollution reduction is found...
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...A.1 Horizontal, Vertical, Trend and Ratio Analysis Executive Summary The financial assessments of Competition Bikes, Inc. (CB) are based upon the income statements and balance sheets from Calendar Years 6, 7 and 8 to gauge the operation efficiencies of the company. In general, the analysis shows that, between Year 6 and 7, Competition Bikes, Inc. had a large growth in new earnings that was not capitalized in Year 8. The Net Earnings has moved from a positive 313.4% down to a -81.6% loss. This will be evaluated in detail below. A.1.a. Horizontal Analysis Results Horizontal Analysis is the comparative analysis of each line item across the timeframes of the company and is calculated in dollars and percentages. The analysis will look at how the accounts have changed from one year to the next. The formulas used are: Dollar change = This Year’s Balance – Last Year’s Balance Percent change = Dollar Change . Last year’s Balance The horizontal analysis will provide an analysis of the financial performance of Competition Bikes, Inc. and provides an overview of potential trends of the company (Ashfaq, n.d.). The horizontal analysis between Years 7 and 8 further shows that total revenues decreased by 15.0% and total expenses decreased by 69.1%. As result of this, Earnings Before Income Taxes (EBIT) also decreased 313.4% and net earnings reduced by 81.6%. INCOME STATEMENT The horizontal analysis is based on the income statement for Years...
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